Thank you for contacting me about the Trussell Trust’s Social Security Campaign.
I understand anxiety over rising prices and inflation. I want to assure you that the Government will continue to listen and to ensure that the policies in place do help those who need it most. If any constituent needs assistance accessing any of the schemes below, please get in touch.
This country has a robust social security system to support those on low incomes. Over £242 billion will be spent through the welfare system in Great Britain in 2022/23 including £108 billion on people of working age and over £134 billion on pensioners.
The Government has also put in place £37 billion of cost of living support for households this year.
This includes a £650 cost of living payment, payable in two lump sums, for over 8 million households across the UK in receipt of eligible means tested benefits. The first payments of £326 were issued from 14 July, and the second payment of £324 will be paid in the autumn. There are separate one-off payments of benefits £300 for pensioner households (paid through and as an addition to the Winter Fuel Payments) and £150 for people receiving disability benefits.
The payment made through the Energy Bills Support Scheme has been doubled to a non-repayable £400 discount, which will be paid through suppliers from October. This support is in addition to the £150 Council Tax rebate for households in England in Council Tax bands A-D, which was announced in February.
The Secretary of State for Work and Pensions is required to undertake an annual statutory review of benefits and pensions. They are required to up-rate some benefits and pensions by at least the increase in earnings or prices. Other benefits, mainly those of working age, are subject to their discretion. In 2022/23 benefits and pensions were increased by CPI of 3.1 per cent.
The review uses the Consumer Prices Index (CPI) in the year to September to measure inflation, and average weekly earnings for the period May to July to measure earnings. The annual review will commence in the autumn and her decisions will be announced to Parliament in November in the normal way.
Debt deductions for Universal Credit overpayments are part of the DWP’s obligation to protect public funds and to ensure that, wherever possible, benefit overpayments are recovered. I know that Ministers want to discharge this duty without causing undue financial hardship. That is why the Government has an established route by which anyone experiencing difficulties with repayments is encouraged to contact DWP Debt Management in order to negotiate a possible reduction in their rate of repayment, or a temporary suspension of repayment, depending on financial circumstances.
The Department has to balance the amount that can be deducted with the protections that deductions offer claimants. Lowering the maximum deduction rate further would result in less essential deductions such as Child Maintenance being made. The Government has reduced the maximum deduction rate twice in the past three years – from 40 per cent to 30 per cent in 2019, and further to 25 per cent in 2021. Ministers believe this strikes the right balance of ensuring priority debts and social obligations are met whilst enabling claimants to retain more of their award to meet day-to-day needs.
Thank you again for taking the time to contact me.